1. Dare to Leave Your Comfort Zone, Don’t Hesitate
If my current trading system isn’t taking me towards my financial goals or aligning with my desired lifestyle, I shouldn’t hesitate to make a change. I shouldn’t waste time being “stuck” with old methods or past successes. The longer I stay, the more complacent I become, turning it into a safe space I don’t want to leave.
I’m not suggesting changing trading systems frequently, but sometimes, a system just isn’t right for me. I need to be aware of myself and my environment. I shouldn’t let trending techniques trap me into something unsuitable. For example, SMC and ICT might not suit me, and it’s okay not to continue with them, even if others around me trade SMC. If it truly doesn’t fit me, it’s alright to move on.
2. I Learn to “Develop Systems,” Not to “Beat the Market”
Most courses focus on teaching us how to beat the market but overlook how to fine-tune or develop a trading system that suits us. It’s no surprise many have vast knowledge from various sources but don’t know how to use it to achieve consistent profits. To excel in trading, I need to focus on learning to “develop my system” rather than just beating the market.
Building on point 1, if I find that a trading system truly isn’t my style, I should change it. But if I find one I love, I should strive to develop and refine it until it becomes my own system, with adjusted parameters and muscle memory, allowing for emotionless, automated trading.
3. Gradually Increase Lot / % Risk Only When My System is Ready
“Increasing lot size drastically is like gambling with my future unnecessarily.”
Seeing profits might make me think I’m on the path to riches, leading to dreams of luxury cars and increased investment or risk. But if my system isn’t stable enough, the hidden risks could result in significant losses. Many new traders lose confidence and quit after facing setbacks, especially those with monthly expenses to cover.
I shouldn’t rush to get rich. I should survive long enough to understand my system, its flaws, and develop it. Trading is about survival first; profits are the rewards that follow.
4. Don’t Trade Following “Trends,” Trade in My Own Way
Everyone has a different trading style. Some prefer short-term trading, others long-term. Some can handle volatility, while others seek stable returns. Each person has a different risk tolerance.
I need to find a trading style that suits me. For the first 1-3 years, I should learn a lot but use the least. There will be a system I distill into my own. If I dislike risk but trade in a highly volatile system, even if I make big profits, I won’t be happy because of the constant stress.
The sooner I understand myself, the sooner I can set up the right system. Each system requires different management strategies.
“Find my own system.”
5. Money/Risk Management is the Number One Skill for Traders
When talking about standout skills for traders, many might think of technical analysis, chart reading, or fundamental analysis. But the most crucial skill is money and risk management. With good money management, I have a chance to profit even with instinct-based trading (Risk-Reward Ratio / Win Rate).
Conversely, poor money management makes success difficult, regardless of my knowledge. I can’t win every time, and a few losses wiping out my portfolio means failing at money and risk management, thus failing in this career.
6. Choose My Surroundings Wisely as They Shape Me
If I’ve never studied FOREX but regularly join a FOREX trading group, I’ll gradually absorb and understand trading insights. The people around me shape me.
I should surround myself with successful traders or those striving for success, sharing positive energy.
7. Don’t Cling Too Much to “Formulas for Success”
There are many Forex trading formulas available online, both free and paid, and they work at times. But the market changes over time, and effective techniques may become obsolete.
Professional traders don’t cling to one method but adjust strategies to fit market conditions. Trying new methods might seem like trial and error, but it’s part of learning and developing.
I once clung to directional trading strategies until COVID-19 and wars forced a rethink. There are many trading strategies, some not requiring chart watching. I shouldn’t be afraid to try new methods, as they might lead to significant breakthroughs.
8. Focus on Building “Assets” Alongside Trading
What makes traders sustainably wealthy is the assets they grow from trading profits. Successful traders often invest in other assets, creating both cash flow and assets. Cash flow comes from daily trading profits, while assets come from reinvesting a portion of profits into things like real estate, digital assets, or stocks, growing in value over time.
